Soluna expands capacity fourfold through its partnership with Blockware; West Texas wind power increases the Bitcoin mining facility’s capacity to exceed 17 megawatts

Bitcoin mining and AI computing power company Soluna Holdings (Nasdaq: SLNH) announced on April 21 that it has signed its fourth capacity expansion agreement with Blockware. The Dorothy 1B wind power data center project in West Texas added 3.3 megawatts of installed capacity, bringing Blockware’s total capacity across Soluna’s sites to over 17 megawatts.

Behind the Fourth Capacity Increase: Soluna’s “Behind-the-Meter” Renewable Energy Model

This marks the fourth time Soluna and Blockware have expanded capacity since their partnership began. Previously, at different sites, they accumulated increases in compute allocations; earlier this year, in February, they added 6 megawatts of capacity at the Dorothy 1A site. Each capacity increase builds on the prior agreements rather than replacing the original arrangements.

Soluna’s business model focuses on a “behind-the-meter” setup—directly using surplus renewable energy generated at wind farms or solar power sites, bypassing the public power grid, and delivering electricity directly to bitcoin mining facilities and AI computing infrastructure. This helps lower electricity costs and improve operational stability.

$53 Million Acquisition of a Wind Farm: Direct Control of the Energy Supply Chain

Soluna acquired the Brisco wind farm for $53 million, giving it direct control over energy generation at the “Dorothy” project (Dorothy) campus. This created vertical integration from energy production to compute output, fully eliminating reliance on the power grid.

Soluna CEO John Belizaire said: “We’re excited to expand our partnership with Blockware for the fourth time. As our business scales, we remain committed to providing reliable renewable energy infrastructure for AI and bitcoin mining.” Blockware CEO Mason Jappa added: “Their ability to launch new sites allows us to deepen the partnership and expand together in scale.”

Dorothy 3 Comes Into Focus; the Next Expansion Node Has Yet to Be Announced

With Dorothy 1B entering commercial operations, Soluna announced plans to develop the Dorothy 3 project at the Brisco campus. It did not disclose a specific timeline yet, saying it will release more details as the project progresses.

Frequently Asked Questions

How does Soluna’s “behind-the-meter” business model work?

The “behind-the-meter” model means the data center is directly connected to renewable energy facilities, using surplus power generated at wind or solar sites without going through the public power grid. This setup typically allows power to be obtained at a cost far lower than public utility electricity rates. For bitcoin mining and AI computing businesses, where electricity costs make up a very high proportion, this offers a clear competitive advantage.

Why does Blockware keep expanding its deployed capacity at Soluna sites?

As a provider of bitcoin mining infrastructure, Blockware’s core competitiveness is delivering stable, low-cost hosted compute power to miners. Soluna’s “behind-the-meter” renewable energy model aligns with the need for low electricity costs. Meanwhile, Soluna’s ongoing capability to bring new sites into operation enables Blockware to expand capacity on demand as its business grows.

What are the main reasons SLNH shares surged recently?

Over the past 30 trading days, SLNH’s cumulative gains have exceeded 100%, and over the past 5 trading days, the gains have exceeded 29%. This rally is closely tied to a series of capacity expansion announcements by Soluna in West Texas, showing the market’s positive response to its renewable energy compute expansion strategy.